Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Zevra Therapeutics's Sloan Ratio for the quarter that ended in Dec. 2023 was 2.83%.
As of Dec. 2023, Zevra Therapeutics has a Sloan Ratio of 2.83%, indicating the company is in the safe zone and there is no funny business with accruals.
Zevra Therapeutics Sloan Ratio % Historical Data
The historical data trend for Zevra Therapeutics's Sloan Ratio % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Zevra Therapeutics's Sloan Ratio %
For the Biotechnology subindustry, Zevra Therapeutics's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Zevra Therapeutics's Sloan Ratio % Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Zevra Therapeutics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Zevra Therapeutics's Sloan Ratio % falls into.
Zevra Therapeutics Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Zevra Therapeutics's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Zevra Therapeutics's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -11.767 (Mar. 2023 ) + -5.084 (Jun. 2023 ) + -14.045 (Sep. 2023 ) + -15.153 (Dec. 2023 ) = $-46.05 Mil.
Zevra Therapeutics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -4.045 (Mar. 2023 ) + -8.704 (Jun. 2023 ) + -4.628 (Sep. 2023 ) + -16.158 (Dec. 2023 ) = $-33.54 Mil.
Zevra Therapeutics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -17.555 (Mar. 2023 ) + 34.036 (Jun. 2023 ) + -44.456 (Sep. 2023 ) + 10.585 (Dec. 2023 ) = $-17.39 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Zevra Therapeutics (NAS:ZVRA) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Dec. 2023, Zevra Therapeutics has a Sloan Ratio of 2.83%, indicating the company is in the safe zone and there is no funny business with accruals.
Zevra Therapeutics Sloan Ratio % Related Terms
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Zevra Therapeutics (Zevra Therapeutics) Business Description
Zevra Therapeutics Inc is a rare disease company melding science, data and patient needs to create transformational therapies for diseases with limited or no treatment options. The firm's data-driven clinical, regulatory, and commercialization strategies overcome complex drug development challenges to bring much-needed therapies to patients. Its product candidate comprises Arimoclomol, orally delivered investigational product candidate for the treatment of Niemann-Pick type C (NPC). KP1077 is Zevra's lead clinical candidate being developed as a treatment for idiopathic hypersomnia (IH) and narcolepsy.
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